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gg
Do you know what the relationship of the previous non exec directors
Tom Meakin, Peter Hutley, Stuart Nelson & Geoff Williams,
was to the Cassimatis' ?
Storm Financial Group
- Thread starter Garpal Gumnut
- Start date
gg
Do you know what the relationship of the previous non exec directors
Tom Meakin, Peter Hutley, Stuart Nelson & Geoff Williams,
was to the Cassimatis' ?
Julia
In Memoriam
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Sqwark, those are very useful steps. All I'd add would be for individuals to get their own legal advice, as separate from participating in any class action, as there could be personal and individual circumstances which a good lawyer can turn to the client's advantage.
Most lawyers will agree to a set fee for a brief initial consultation in which they can advise you if it's worth proceeding.
However, if a Storm client is seemingly now broke, the idea of taking on legal fees may seem unacceptable. In that case, maybe investigate Legal Aid. I'm not sure what the current criteria for accessing this are.
In most places there is also a community legal service in which a roster of local lawyers do free consultations once a week or so at a community headquarters. A phone call to your local Neighbourhood Centre or Court House would probably provide details of this.
No one else seems to have mentioned any thing similar to my particular introduction to Storm so I thought I would introduce a different slant. I was getting close to 60 and had been working all my life - so hard that I had reached exhaustion. I wanted to retire and smell the roses so about a year before retirement I went to a recommended financial advisor - just a little 2 man band (re phrase I man 1 woman band) very impressed quite conservative. So I sold my house in Sydney went to country NSW bought a nice house and put the balance in Super and that is how I continued for the next couple of years. I started to feel physically better and thought this is great, no desire for riches just a comfortable life. Grand children started to come fast and furious and I was reasonably contented with my lot. Then my conservative FA started talking about this whole new idea of securing your financial future nothing about Storm I had never been to a Storm Office I was seeing the FA firstly Chatswood then they moved to Artarmon and then to North Sydney. Of course that move was to be closer to Storm. I continued to see my FA in their office not Storm's office as I had no idea there was any sort of relationship. Then I found out that their clearical staff were employed by Storm then the Nth Sydney office disappeared and everything is now taking place in a sky scraper. Yes I should have known better but my achiles heel was that I wanted to help financially with my grand children - I wanted them to have a good education and for that I was willing to pay. I have in the last week found out that of my approximate $80000 paid to storm my FA recieved half (I have been told by I think a reliable source) who knows? and I am only one client. I now wonder just what else my FA received from Storm was I just part of a package. Look I don't blame any one but me I went into it with my eyes wide open but I was assured/and believed every thing I was told as I had years of a relationship with this person. But what I am angry about is the following I RANG & RANG requesting to get out saying I do not want to loose my house and I was told a) it would not happen b) and then when I was concerned that Storm will fold I was told that they have insurance and c) not to worry you will always have me behind you thats my FA talking. And this is what I am angry about where in the hell are they we have all been left with none of the promised help and no advice I am not a candidate for any other FAdvisor as I have nothing left to advise on. My Macquarie Margin Loan is OK as I paid 12 months in advance and it has 5 months to run and the cash and the debt are approx the same so no debt there thank God The money in Macquarie is earning 3.5% not enough to pay the $3000 a month mtge on my house. What I was told by my FA was that he/she bailed out into cash as he/she could do that. Where as if I bailed it would be much harder to get back in - I have no email records of my requests and no letters just the telephone records of copies I have down loaded from my Telstra accnt (its easier on line as you can sort into numerical order of the number called) and let me say there are a lot of calls. So the big question here is - was my little conservative FA sold a bag of goods by Storm or was it just pure greed. Leaving out of the question of course my greed.
Shibby,
Before Storm tried to float, apparently they went around Australia buying up small FAs, presumably to make their float more attractive.
From what you are saying it sounds as if your FA was one of those purchased by Storm. Which of course means they were now only offering Storm's product.
If that is the case, I would have thought it mandatory that they advised you of the change in their status from giving a broad based and a more "independant" advice to just plugging one product.
Before Storm tried to float, apparently they went around Australia buying up small FAs, presumably to make their float more attractive.
From what you are saying it sounds as if your FA was one of those purchased by Storm. Which of course means they were now only offering Storm's product.
If that is the case, I would have thought it mandatory that they advised you of the change in their status from giving a broad based and a more "independant" advice to just plugging one product.
Daisy thank you for that information. Therefore that timing is of the essence I need to find out just when they became storm yet I am a little confused as I know my FA still has other clients who are not with storm - maybe that was part of the agreement that they signed. I refuse to capitalise the word storm.
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shibby, have you sort any legal advice or direction?
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Excellent addition, Budgeting is just disipline. If you can't pay for it or service the debt then go with out. Simple. Also if you do get into position where you are having trouble meeting commitments, go as soon as possible to the person/business you woe the money. Many seem to be afraid to do this, don't ignore the debt, don't let it build. You may be presently surprised how helpful some people/businesses are in these circumstances. Everything is flexible/negotible to some extent, just give it a go.
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A balanced article from Michael West
Storm founder tries again
http://business.smh.com.au/business/storm-founder-tries-again-20090119-7k2p.html
Cassimatises try again
"Ironically, ASIC searches reveal that Ignite, a company associated with Emmanuel Cassimatis, has applied for a financial adviser's licence with the regulator. The approval is ''pending''. Ignite is owned by Emmanuel and Julie Cassimatis and earned royalties from Storm for providing software services.
The Ignite application was made in late November last year, just before Commonwealth Bank began contacting Storm clients to advise them of margin calls against their positions and selling down its Storm-branded funds. (Challenger had begun selling in October)."
This is going to end well, I feel I am developing Tourette's .......:swear:
Storm founder tries again
http://business.smh.com.au/business/storm-founder-tries-again-20090119-7k2p.html
Cassimatises try again
"Ironically, ASIC searches reveal that Ignite, a company associated with Emmanuel Cassimatis, has applied for a financial adviser's licence with the regulator. The approval is ''pending''. Ignite is owned by Emmanuel and Julie Cassimatis and earned royalties from Storm for providing software services.
The Ignite application was made in late November last year, just before Commonwealth Bank began contacting Storm clients to advise them of margin calls against their positions and selling down its Storm-branded funds. (Challenger had begun selling in October)."
This is going to end well, I feel I am developing Tourette's .......:swear:
Shibby, I am not quite sure why you are holding on to your margin loan. Macquarie can refund the fixed interest - minus a break fee. I am doing that. If you do not look at getting back in the market in the next couple months it is the thing to do. Phone their 1800 number adn talk to investments - they can fax or email you the necessary forms.
After reading this article my reservations about the success of litigation etc have diminished considerably. GO FOR IT!!
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Latest update:
Step #1 Wind up all margin lending accounts, especially if your rate of return is below your interest accrual.
Step #2 Calculate your personal balance sheet.
Step #3 If Step #2 results in a negative outcome you can't live with; bankruptcy is your remaining legal option.
Step #4 If Step #2 results in an outcome you can live with liquidate everything that you can live without.
Step #5 During the preceding Steps make your holistic health your number one priority. If your loved one goes quiet or demonstrates a personality change watch them like a hawk. Suicide is a real danger.
Step #6 Set yourself a budget and live within it
Step #7 Spend a lot of time on collating your Storm activities. Write every memory item up as a diary note and find and file every piece of paper, note, brochure etc. you have from Storm, your FP, the bankers, margin lender, responsible entity or fund manager.
Step #8 Once stabilised go after those that caused this with a vengeance. You have many covenants and powerful regulations crying out to lend a hand. Do it with a consolidated class action.
Step #9 Don’t underestimate the power of networking. Communicate with your fellow Storm victims, join any group that they have set up to discuss the problem and their strategy.
At each step seek advice as there are a multitude of organizations and agencies waiting to provide gratis help.
Can anyone add or insert a step or two. If you are a specialist please contribute and give some guidance or direction on your Step specialisation.
:sheep:
Step #1 Wind up all margin lending accounts, especially if your rate of return is below your interest accrual.
Step #2 Calculate your personal balance sheet.
Step #3 If Step #2 results in a negative outcome you can't live with; bankruptcy is your remaining legal option.
Step #4 If Step #2 results in an outcome you can live with liquidate everything that you can live without.
Step #5 During the preceding Steps make your holistic health your number one priority. If your loved one goes quiet or demonstrates a personality change watch them like a hawk. Suicide is a real danger.
Step #6 Set yourself a budget and live within it
Step #7 Spend a lot of time on collating your Storm activities. Write every memory item up as a diary note and find and file every piece of paper, note, brochure etc. you have from Storm, your FP, the bankers, margin lender, responsible entity or fund manager.
Step #8 Once stabilised go after those that caused this with a vengeance. You have many covenants and powerful regulations crying out to lend a hand. Do it with a consolidated class action.
Step #9 Don’t underestimate the power of networking. Communicate with your fellow Storm victims, join any group that they have set up to discuss the problem and their strategy.
At each step seek advice as there are a multitude of organizations and agencies waiting to provide gratis help.
Can anyone add or insert a step or two. If you are a specialist please contribute and give some guidance or direction on your Step specialisation.
:sheep:
Hi Everybody,
first time on this Aussie Stock Forum, and i wish i had all this info a couple of years ago. Luckily in the end i have just enough in my portfolio to cover my loans. Sorry about all those who are in dire straits.
I guess i knew the risks involved but never thought it would come to this.
Some of the things that gripe me is that the Storm said the LVR should never reach more than 65-70% for me. Which was fine until the GFC and it ended up at 95%. Storm should have stuck to their guns (and i should have been more aggressive) that once it started going over the 70%, i should have sold some or all of the shares (i guess i thought they knew what thy were doing).
The other thing is lack of what is going on. Thanks to all those messages about what to do and who to call (ABN checklist for Storm clients was very helpful). I got a letter from Storm on Friday saying they were working to resolve the issues (this was 2 days after the Administrator took over).
The 2 things i can take from this episode is :
1) never use a finanicial company as they only think about themselves.
2) never use your house as equity
first time on this Aussie Stock Forum, and i wish i had all this info a couple of years ago. Luckily in the end i have just enough in my portfolio to cover my loans. Sorry about all those who are in dire straits.
I guess i knew the risks involved but never thought it would come to this.
Some of the things that gripe me is that the Storm said the LVR should never reach more than 65-70% for me. Which was fine until the GFC and it ended up at 95%. Storm should have stuck to their guns (and i should have been more aggressive) that once it started going over the 70%, i should have sold some or all of the shares (i guess i thought they knew what thy were doing).
The other thing is lack of what is going on. Thanks to all those messages about what to do and who to call (ABN checklist for Storm clients was very helpful). I got a letter from Storm on Friday saying they were working to resolve the issues (this was 2 days after the Administrator took over).
The 2 things i can take from this episode is :
1) never use a finanicial company as they only think about themselves.
2) never use your house as equity
I actually rang on Thursday and asked 3 questions
1. How much will you penalise me if I pay out my loan early
2. How much pre paid interest will be refunded
3. Why when I have $890,000 in my cmt accnt and owe you $860,000
why have I only $4000 available (that was Thursday) now $3000 gone for mtge so down to $1000.
I know I am dumb but I just couldn't get my mind around the figures - of why only $4000. The girl on Thursday mentioned Challener so i rang Challenger - no more shares I had been completely paid out. Then I thought maybe that difference was sitting in my accnt as that is probably my pre paid interest and of course I can not use it.
So this morning I rang spurred on by the fact that was the avenue to pursue.
for the day.
Bottom line - it is my money but the gentleman I spoke to said they will release me the $30,000 whn I pay back the loan and only then. I then said I need that $30,000 now to live on and pay my mtge his reply pay back the margin loan and you can have your $30,000 - My reply you are black mailing me his reply - he was offended and will speak to his manager.
Been in touch with the ombudsman who has told me what avenue to pursue I want that money I do not want to be black mailed I was to examine the payout figure I want to examine my penalty charge as what ever else they up to.
My rant for the day.
Shibby,
Re: the person you spoke to at Maquarie. I've learnt whenever I have a problem with a business to ask for and make a note of the full name of the person I spoke to. It serves 2 purposes. The first is it makes them personally aware that they can be in trouble with their management if they give misinformation or don't follow correct procedure. The second is that when you contact the business in future, by supplying the full name of the person you spoke to last time you can prove that this isn't your first attempt at whatever it is you are trying to do. I'm probably telling you something you already know....
Good luck with all of this.
Re: the person you spoke to at Maquarie. I've learnt whenever I have a problem with a business to ask for and make a note of the full name of the person I spoke to. It serves 2 purposes. The first is it makes them personally aware that they can be in trouble with their management if they give misinformation or don't follow correct procedure. The second is that when you contact the business in future, by supplying the full name of the person you spoke to last time you can prove that this isn't your first attempt at whatever it is you are trying to do. I'm probably telling you something you already know....
Good luck with all of this.
Sibby - phone Macquarie again and give them your email and ask them to email you a form to break the fixed loan and another form to authorise a refund on the prepaid interest. Do you have a cash management account with Macquarie as they need somewhere to deposit any refund? If you get no joy with the person you speak with, ask to talk to their manager. Macquarie is getting rid of all margin loans by the end of June, so you would think the more they can clear up now the better.
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It might seem trite - but a lot of elderly people are very attached to their pets and would feel a deep sense of responsibility towards them - particularly if they live on their own (not just elderly people either ) and the idea of not being able to afford pet food/care is just one of the many things they may be facing if in a difficult situation. For example if someone is living in a house but is now forced to move to rental accomodation or even publicly funded accomodation they may not be allowed to keep pets in that accomodation.
When I say they shouldn't blame themselves that doesn't mean that they shouldn't accept responsibility for their contribution to the situation. Its possible to accept responsibility for something without blaming yourself/beating youself up and allowing yourself to be destroyed by guilt. By not accepting some responsibility and blaming it all on others they are not facing up to the situation either imo.
Julia said:
No sorry I was probably a bit unclear - all of my comments in the post were directed at either individuals in the situation of being affected by Storm, or their friends/helpers. As I understand it some of the people posting on here are not actually affected directly but are helping people they know that are affected - or alternately are affected but are also helping friends/parents etc. that may be going through a harder time than them and aren't posting on here.
No but it helps to put money into perspective. We are lucky in this country that we have a welfare system of pensions and unemployment benefits for people that are in a situation where they don't have an income of their own, and that will provide enough to fund some sort of accomodation - so nobody is going to go without a roof over their heads as far as I can see. If they felt their happiness was strongly tied to their financial success and 'social status' then its helpful to realise and be aware that happiness can be obtained without either of these things.
In relation to practical suggestions regarding their financial situation, my view is that once people overcome the emotional impact and find the mindset to put the past behind them and move fowards, most are savvy enough to come to practical solutions to their situations - but getting over that first emotional stage and finding the will to move forward from a bad experience can be one of the most difficult steps.
But I'll continue to read the thread and if there is anything practical I think I can suggest that hasn't been mentioned already I'll put it forward.
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... Macquarie is getting rid of all margin loans by the end of June, so you would think the more they can clear up now the better.
I appears that Leveraged Equities have purchased Mac Margin Lending. Sorry, don't have a link but have seen a letter dated 13th Jan, 2009.
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Here you go. http://www.bendigobank.com.au/about_us/news/news_dbdetail.asp?nID=536
"Bendigo and Adelaide Bank’s Chief Executive – Partner Advised Banking, Jamie McPhee, said the Bank was delighted to strengthen the existing relationship between Leveraged Equities and Macquarie Private Wealth. "
Has anybody spoken to Macquarie bank about paying out there Margin Loan ?
They told me i would have to pay breakout costs for the fixed loan. I'm only paying off early (apart from Storm debacle) because they are no longer doing Margin Lending. Is this the same response other people got, or were you able to get the break costs waivered ?
They told me i would have to pay breakout costs for the fixed loan. I'm only paying off early (apart from Storm debacle) because they are no longer doing Margin Lending. Is this the same response other people got, or were you able to get the break costs waivered ?
